Doda Donchian Indicator: Channel Edges, Midline Signal

Written by Dominic Walsh · Published 4 Jun 2026 · Last updated 9 Sep 2026

The doda donchian indicator separates the picture from the trigger. Two Donchian edges show the range, exactly as you would expect. The signal, though, comes from the gold midline, which is a plain 20-bar average rather than the halfway point between the edges.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Main price chart
Plots	5: DodaUpper, DodaLower, DodaMid, BuySignal, SellSignal
Alerts	popup
Inputs	5

What the Doda Donchian Indicator draws on the chart

DodaUpper is the dodger blue line at the highest high of the window.

DodaLower is the crimson line at the lowest low.

DodaMid is the gold line, a simple average at `MidPeriod` bars.

BuySignal and SellSignal mark a close crossing that midline.

• DodaUpper: line, dodger blue, width 2
• DodaLower: line, crimson, width 2
• DodaMid: line, gold, width 2
• BuySignal: arrow, lime, width 2, arrow code 233
• SellSignal: arrow, red, width 2, arrow code 234

How the Doda Donchian Indicator calculates its values

Building the two edges

iHighest and iLowest scan `DonchianPeriod` `20` bars, starting one bar back. The current bar stays out of its own channel. Both edges then hold their value until a new extreme arrives or the old one ages out.

A separate midline

iMA supplies a simple average of the close at `MidPeriod` `20`. That is not the same as the midpoint between the two edges. An average follows where price spent its time, while a midpoint only follows the two extremes.

The crossing test

cross_up needs the previous close at or below the previous midline value and the current close above the current one. Comparing each close against the midline of its own bar keeps the test honest as the average moves.

How to read the signals

The two edges tell you the range and the gold line tells you the balance.

A crossing near the middle of a wide channel means less than one near an edge.

Both edges holding flat means the last twenty bars set no new extreme.

Lengthen `MidPeriod` alone for fewer crossings inside the same channel.

Alert channels in this build: popup, one message per closed bar.

`EnableAlerts` ships on and raises a terminal popup on a midline crossing, with `AlertPrefix` in front of the text. This build has no push, email or sound channel. The guard permits one message per closed bar.

Every Doda Donchian Indicator input

Core settings

Setting	What it does	Default
DonchianPeriod	Donchian channel period. Bars in the channel, default `20`.	20
MidPeriod	SMA period for middle line. Bars in the midline average, default `20`.	20

Display settings

Setting	What it does	Default
ArrowGapPoints	Arrow gap in points. Mark distance from the candle in points, default `10`.	10

Alert settings

Setting	What it does	Default
EnableAlerts	Enable alerts on signal. Popup on a midline crossing, default `true`.	on
AlertPrefix	Alert prefix. Text at the front of the alert message, default `Doda-Donchian`.	Doda-Donchian

Settings that fit your chart

A channel needs swings, which is why the reference note calls for H1 and above. EURUSD H1 is the reference chart, where twenty bars covers most of a day. On M5 the edges barely separate. On H4 the channel describes a week and crossings turn into occasional events.

When the Doda Donchian Indicator fails

A midline crossing has nothing to do with the channel edges, despite sharing a chart.

In a range price crosses the average repeatedly with no follow-through.

Both periods default to 20, which hides the fact that they measure different things.

Copy the compiled Doda Donchian Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Background reading on the method behind the Doda Donchian Indicator: Donchian Trading Guidelines at StockCharts ChartSchool, Effective exchange rate index on Wikipedia.

Download the Doda Donchian Indicator for MT4 and MT5

The zip holds the compiled Doda Donchian Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

FAQ

Is DodaMid the midpoint of the channel?

No, and that surprises people. It is a simple average of the close over `MidPeriod` `20` bars. The midpoint between the two edges would only follow the extremes, while an average follows where price actually spent its time.

Why does the DodaUpper edge skip this bar?

So the bar can sit outside its own channel. iHighest and iLowest start their scan one bar back. Without that step the upper edge would always include the current high, and the picture would be less useful.

What does AlertPrefix do?

It puts a label at the front of the popup text, defaulting to Doda-Donchian. That matters when several tools alert on the same terminal, since the message otherwise gives you no clue which one fired.

Should MidPeriod match DonchianPeriod?

It does by default, but there is no reason it must. Lengthening `MidPeriod` alone gives fewer crossings inside the same channel. Shortening it makes the gold line follow price more closely and produces many more marks.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Doda Donchian Indicator as one input. Always backtest before trading live.